Portfolio of Services

The Valuations and Forensics Advisory, LLC offers a wide range of services.  Some of our services include:

• Business Valuations for Probate Purposes

The valuation of an entire business, or of a fractional business interest for probate purposes, requires that the appraiser, acting as a surrogate for both a hypothetical buyer and a hypothetical seller, performs a valuation analysis of a subject company incorporating the eight factors considered under Revenue Ruling 59-60 and subsequent regulations concerning the application of the Fair Market Value Standard of Value.

This is a rigourous and exhaustive process which should be undertaken only by accredited valuation professionals.

The successful completion of such an appraisal process then becomes the basis for a credible opinion of value that can be used for inheritance tax reporting compliance purposes.

The following is a partial list of the problems that can arise when the fair Market Value Standard of Value is inappropriately applied in a probate valuation:

• Inadequate Valuation Methodology. Flawed application and/or interpreation of the Fair Market Value Standard of Value may result in a business appraiser's opinion lacking relevance to the purpose of the probate engagement; and also potentially resulting in the overall appraisal process undertaken not in accordance with generally accepted valuation methods and practices, and thereby be unacceptable to the Internal Revenue Service.
• Improper Application of the Fair Market Value Standard. An IRS probate appraisal must be grounded on a consistent and relevant application of the fair market value standard of value to the taxpayer’s specific facts and circumstances, in light of any applicable treasury regulations.
• Lack of Support for Valuation Adjustments. Valuation adjustments must be developed consistent with the level of value to be determined and with the resulting outcomes of the valuation methods applied, otherwise analytical gaps can ocur resulting in an Opinion of Value lacking in credibility.
• Improper Valuation date. Probate situations typically require a specific valuation date. Performing a valuation based on data known or knowable after the required valuation date may lead to undesirable results. In cases where the required valuation date differs from a traditional reporting date such as fiscal year ending date, end of the month, end of the quarter, etc., adjustments and interim financial data must be used in order to reconcile and adjust accounting information to conform with to the appropriate valuation date.
• IRS Imposed Valuation Penalties. The above are but a few of typical situations which may call for expensive inheritance tax return audits, and ultimately may result in the IRS seeking to impose accuracy-related penalties in case of a substantial valuation misstatement, i.e., one involving $5,000 or more in valuation misstatements ($10,000 in the case of a corporation other than an S corporation or a personal holding company). 

•  Marital Dissolutions - Divorce Proceedings call for Special Considerations

In divorce engagements, the valuator must carefully apply the standard of value, in most cases, fair market value for marital dissolution purposes, in light of specific judicial requirements, usually seeks to achieve equitable distribution of marital assets.

In these cases, attorneys usually work closely with valuation analysts in order to settle equitable distribution issues. The personal nature of the underlying facts and circumstances call for a high degree of sensitivity and professionalism in order to achieve fair and equitable results expeditiously.

Our principals have extensive experience dealing in legal matters and we appreciate the importance of working in a professional and collaborative fashion with our clients' appointed legal counsel.

We can render valuation opinions under the applicable marital dissolution requirements, as well as provide valuation and financial expert testimony at special hearings during the dissolution process.

Find out how we can help you, email us, inquiry@valfor.net or call us at (800) 959-6122

• Shareholder Disputes - A Fair Value is not "going halfway"

As valuation analysts, we have assisted shareholders' legal counsel in complex valuations situations. We pursue a constructive and collaborative approach in valuation engagements involving shareholder disputes. Our basic premise is to maintain open lines of communication with all parties. Whenever possible, we seek to be jointly retained.

We make every effort to keep all parties well informed during the appraisal process.

We can also perform valuation engagements under the provisions of an existing shareholder's buy/sell agreement